DUBLIN, Dec. 14, 2023 /PRNewswire/ -- Alkermes plc
(Nasdaq: ALKS) today announced that it has entered into a
definitive agreement to sell its development and manufacturing
facility in Athlone, Ireland to
Novo Nordisk, a leading global healthcare company. Under the terms
of the agreement, upon the closing of the transaction, Alkermes
will be entitled to a one-time cash payment of $92.5 million for the facility and related
assets, subject to customary adjustments in accordance with the
agreement. The transaction is expected to close in mid-2024,
subject to certain closing conditions.
"As we prepare to enter 2024 as a pure-play neuroscience
company, we have continued our focus on aligning our
infrastructure and cost structure with the projected needs of
the business. Upon closing, we expect this transaction to drive
operational efficiencies and enhance profitability over the long
term," said Richard Pops, Chief Executive Officer of Alkermes. "I
am particularly pleased to enter this agreement with Novo Nordisk
as it offers our employees at this world-class, state-of-the-art
GMP manufacturing facility in Athlone an exciting opportunity for
growth."
"The acquisition of the Athlone facility represents an expansion
of Novo Nordisk's global manufacturing setup and will provide Novo
Nordisk with additional development and manufacturing capacity for
current and future oral products," said Thilde G. Hummel Bøgebjerg,
Senior Vice President, Product Supply Emerging Technologies, Novo
Nordisk. "With this acquisition, we are excited to soon welcome
approximately 400 highly skilled colleagues currently employed by
Alkermes with valuable capabilities within oral drug development
and manufacturing who will play a key role in serving even more
patients with oral products."
Alkermes and Novo Nordisk also plan to enter into subcontracting
arrangements to continue certain work currently performed at the
facility for a period of time after closing of the transaction,
which may continue through the end of 2025. This transaction is
expected to be operating cost-neutral to Alkermes over the
subcontracting period and thereafter, the transaction is expected
to yield significant operating cost benefit and contribute to
enhanced profitability. Alkermes will continue to retain all
royalty revenues associated with products currently manufactured at
the facility.
Alkermes will continue to manufacture its proprietary commercial
products, VIVITROL®, ARISTADA®, ARISTADA
INITIO® and LYBALVI®, at its Wilmington, Ohio manufacturing facility.
About Alkermes plc
Alkermes plc is a global
biopharmaceutical company that seeks to develop innovative
medicines in the field of neuroscience. The company has a portfolio
of proprietary commercial products for the treatment of alcohol
dependence, opioid dependence, schizophrenia and bipolar I disorder
and a pipeline of clinical and preclinical candidates in
development for neurological disorders. Headquartered in
Dublin, Ireland, Alkermes has a
research and development center in Waltham, Massachusetts; a research and
manufacturing facility in Athlone, Ireland; and a manufacturing facility in
Wilmington, Ohio. For more
information, please visit Alkermes' website at
www.alkermes.com.
Note Regarding Forward-Looking Statements
Certain
statements set forth in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended, including,
but not limited to, statements concerning: the expected timeline,
structure, impacts and anticipated financial and operational
benefits of the transaction, including details relating to the
closing of the transaction and expectations regarding the company's
plans to enter into subcontracting arrangements with Novo Nordisk;
and the company's expectations regarding its future financial
plans, expectations and prospects, including anticipated royalty
revenues and profitability. The company cautions that
forward-looking statements are inherently uncertain. The
forward-looking statements are neither promises nor guarantees and
they are necessarily subject to a high degree of uncertainty and
risk. Actual performance and results may differ materially from
those expressed or implied in the forward-looking statements due to
various risks and uncertainties. These risks and uncertainties
include, among others: that the transaction may involve unexpected
costs, liabilities or delays; that a condition to the closing of
the transaction may not be satisfied or waived in a timely manner
or at all and may result in closing being delayed or not occurring;
that a party may terminate the definitive agreement relating to the
transaction prior to its consummation; the company may not realize
the anticipated financial or operational benefits of the
transaction; the unfavorable outcome of arbitration or litigation,
including so-called "Paragraph IV" litigation and other patent
litigation which may lead to competition from generic drug
manufacturers, or other disputes related to the company's products
or products using the company's proprietary technologies; the
company and its licensees may not be able to continue to
successfully commercialize their products or support revenue growth
from such products; there may be a reduction in payment rate or
reimbursement for the company's products or an increase in the
company's financial obligations to government payers; and
those risks and uncertainties described under the heading "Risk
Factors" in the company's Annual Report on Form 10-K and in
subsequent filings made by the company with the U.S.
Securities and Exchange Commission (SEC), which are available
on the SEC's website at www.sec.gov. Existing and
prospective investors are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. Except as required by law, the company disclaims any
intention or responsibility for updating or revising any
forward-looking statements contained in this press release.
VIVITROL® is a registered trademark of Alkermes,
Inc.; ARISTADA®, ARISTADA INITIO® and
LYBALVI® are registered trademarks of Alkermes Pharma
Ireland Limited, used by Alkermes, Inc. under license.
Alkermes Contacts:
For Investors: Sandy Coombs +1
781 609 6377
For Media: Katie
Joyce +1 781 609 6806
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